The most confused people doing a transaction of a fortune are first time home buyers. Like many people out there, owning your home may be very important to you, but it needs many more factors to be considered which we will discuss here today.
There are a few things you can do in order to make the process easier for you, like saving for a deposit to the application process for a mortgage.
It’s no lie that buying a house is a lengthy process that takes a lot of time and effort.
If like most people out there you want to know where to start you need to ask yourself a range of questions.
For example, you will need to understand how much deposit you need to buy a house and all the costs involved with the buying process.
First time home buyers problems are quite common all over the world.
Read on and we will answer some of the most often asked house buying questions out there and put your mind at ease when it comes to buying your own home.
How much deposit do I need to buy a house?
Before you start getting involved in the money side of property buying you will need to start saving for a deposit.
As a rule, you will need to save between 5-20% of the cost of the home you wish for.
For example, if you want a home costing you £150,000, you’ll need to save at least £7,500.
Obviously, saving more than 5% of the deposit will make it easier for you to apply for a wider range of mortgages at a better value for money.
You should set a saving goal and an estimate for your overall expenditure when buying a house.
Are monthly repayments affordable for you ?
First time home buyers can struggle with the shock to both their lifestyle and finances.
The most significant thing to bear in mind is whether you can really afford to take this step.
Before you even decide to start looking for properties it would be smart to put a budget together.
The checks when applying for a mortgage have become stricter and lenders will be sure to check that you can afford to actually buy a house and keep up with the repayments.
Lenders will check that you can keep up with repayments if the interest rates were to raise or if your circumstances change such as if you were to have a child or become redundant. You will be required to show the lender proof of your income and outgoing. There are many mortgage calculators available online that can help you do this.
Budget for other home-related expenses
Apart from the obvious monthly mortgage repayments you will need to set money aside for other costs associated with buying a home.
This includes things like: Solicitor fees and Survey cost. These are things most of us are unaware of buy they are very important when buying a house.
Schemes to get you on the property ladder
There are a range of government backed schemes that can give you a chance to step on the property ladder. These schemes are in place to help those who may struggle for a deposit or repayments. Lenders will need to make sure that you can afford to pay your mortgage.
Finding the right mortgage for you is not an easy process.
There are many different mortgage deals out there and it is important to know what type of mortgage you want.
For example, you need to decide whether you want a repayment or interest only mortgage. Before you even think about a mortgage, research is key for your quest in finding a home.
About Guest Post Writer :
Samantha from ppi.co.uk is a dog-loving, baking fanatic and horror film nerd, she is passionate about sharing her suggestions and tips with a wider audience online and enjoys writing articles that reach out to the readers.
From Editor,
Thank you, Samantha, for writing the first time home buyers guide for us. We really appreciate your commitment to writing. Hope to work with you again sometime. 🙂
and yes friends,
There are many more factors to be considered apart from monetary ones.
Like,
- The time between booking and possession.
- Government and local facilities for Medical, Water and Transport
- Local Hygiene
We will be talking about them in detail in our next article. 🙂
Keep Reading.
